Frequently asked questions about payments to student loan recipients
Q: I read that Emerson is making payments to students who received loans between 2004 and 2007. I took out a student loan during that period. Am I eligible to receive a payment?
You are eligible to receive a payment if you secured a federal Stafford loan from Citizens Bank or Chase during the 2004–2005, 2005–2006 or 2006–2007 academic years, or if you took a private loan from Education Finance Partners during the 2005–2006 or
2006–2007 academic years.
You are not eligible if you secured a loan from these lenders at other times, and you are not eligible if you received a loan of any kind from a lender other than Citizens Bank, Chase, or EFP at any time.
Q: Why are certain borrowers receiving payments and not others?
The payments are being made under the terms of agreements that have been reached between Emerson and the Attorneys General of Massachusetts and New York. The Attorneys General determined which borrowers should receive payments.
Q: How much money is being distributed?
A total of $780,000 is being paid to nearly 4,000 borrowers. Individual reimbursements amounts were calculated according to a formula specified by the Attorneys General. The amounts range from $25 to $833 per borrower, depending on the amount of money borrowed.
Q: How are the payments being distributed?
Checks have been mailed to eligible borrowers who have graduated. Eligible borrowers who are still enrolled at Emerson will receive credits on their term bills.
Q: Why are payments being made? What led to the agreements with the Attorneys General?
The Attorneys General of New York and Massachusetts investigated the administration of student loan programs at a number of colleges and universities from 2001 to 2007. They paid special attention to the procedures that many schools, including Emerson, used back then to select a small number of “preferred lenders” and how these preferred lenders were presented to students seeking loans.
The agreement with Emerson is one of many agreements reached with lenders and institutions of higher education.
Q: Has Emerson changed the procedures that were used to administer student loan programs?
Emerson has eliminated its preferred lender program and taken aggressive action to assure that its programs employ best practices recommended by both government regulators and private higher education organizations. The actions include:
- Adoption of a strict code of conduct for financial aid officers that prohibits them from receiving compensation or gratuities from lenders
- Adoption of a College-wide conflict of interest policy
- A stem-to-stern review and rewriting of its student financial aid procedures and its financial aid website and printed materials
Emerson has also substantially increased the amount of institutional financial aid allocated to assist students and families during the current economic recession.
As the Attorneys General have stated, Emerson has cooperated fully with their investigations. The College voluntarily implemented all of the reforms that were included in the agreements.
The College has established a special consumer information line to take calls regarding the payments to student loan recipients. The number is 617-824-8398.
Questions may also be addressed to Attorney General Martha Coakley’s Insurance & Financial Services Division at 1-888-830-6277.
